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Mr. John currently has a hairdressers shop located in the municipality of Arizona in the main square and near the Church. Before the pandemic, the

Mr. John currently has a hairdressers shop located in the municipality of Arizona in the main square and near the Church. Before the pandemic, the hairdresser had five employees who worked for 50 hours a week all year round; that is, 52 weeks. As a result of the temporary closure of businesses, the hairdresser reopened its business with two hairdressers under the same conditions as before the closure. Today, each hairdresser earns $24,000 per hour, depending on the number of cuts he makes. The hairdresser has several items of his property that have a monthly depreciation of $2,000,000; he also has the items used by each of the hairdressers, whose depreciation amounts to $6,000 per cut. At the time the hairdresser does not have its own place, so he took a lease for a place that costs $5,000,000 a month; this price includes services, administration $250,000, water $18,000 and electricity $10,000. The value that costs each customer the haircut is $30,000 and each cut takes 20 minutes. It is estimated that under current conditions a hairdresser makes 5 cuts a day. The business, like everyone, must pay income tax of 33% a year.

QUESTIONS

a. Indicate what is the contribution margin of each hairdresser?

b. Determine the balance point of the business for the year.

c. Determine the profit of the business if 30,000 cuts are made during the year.

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